2021 (10) TMI 1154

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cts in this case are that the appellate order was passed u/s.250 of the Act dated 31.08.2017 for the assessment year 2005-06 as against the assessment order passed u/s.143(3) r.w.s.147 of the Act dated 07.02.2013. That subsequent to the order passed dated 31.08.2017 i.e. the appellate order, the assessee moved rectification petition u/s.154 of the Act stating that at Para No.3.6 of the appellate order requires modification as the relief sought vide grounds No. 8 & 9 were not fully adjudicated. The assessee had relied on the judgment of the Hon‟ble Karnataka High Court in the case of CIT Vs. Santosh Kumar Sheety, 49 taxmann.com 47 wherein it was held the amendment to the provisions of section 40(a)(ia) of the Act by the Finance Act, 20....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly after verification of payment of TDS in this regard. 5. At the time of hearing, the Ld. DR fairly submitted that the main issue whether TDS to be deducted or not by the assessee, was on the fact that on the payment made by the assessee company to non-resident whether it is in nature of royalty and if it is so, then the assessee was required to deduct TDS as per provisions of Section 195 of the Act. That explaining the background, the Ld. DR submitted that in assessee‟s own case, the Bengaluru Bench of the Tribunal had held the payment to be royalty, thus, attracting the provision of TDS and if failure to deduct TDS, the provision of Section 40(a)(i) was attracted and the Tribunal had confirmed the disallowance made under provisi....